As part of the NYSE Euronext Group, we have the unique advantage of being able to leverage investments in world class technology, market infrastructure and regulatory supervision to access a substantial Europe-wide client distribution network. Our proposition is built around two core differentiators of community and scale, as well as opportunities for price improvement and established business relationships.
In November 2009, SmartPool migrated to NYSE Euronext’s Universal Trading Platform (UTP). Via UTP, we can provide access to a Europe-wide client distribution network of over 220 firms (already ‘on-net’) and build a non-homogeneous trading community to differentiate SmartPool in a way that is difficult to replicate.
By leveraging the Universal Trading Platform, our European cash customers are able to access three types of market venues: the regulated markets, SmartPool and NYSE Arca Europe. This access is available via the same gateways, protocols and market data platform on the same matching engine, making it a cost efficient single point of connectivity for both dark and lit pools.
By offering access to such a diverse pool of liquidity, traders on SmartPool regularly achieve an average price improvement of between 4 to 6 basis points per trade in blue chip securities. For small and mid-cap securities, where liquidity is scarce and implicit execution costs tend to be higher, even greater price improvement can be achieved.
SmartPool can offer a long-term relationship to our members that is unlikely to be damaged by short-term concerns. In a trading landscape characterised by fragmented liquidity, unsustainable commercial models and probable consolidation, users can take advantage of an agile trading environment that is underpinned with the strength of a global exchange.